Definitions.

Sec. 1. As used in this act: "Adverse information" means information indicating that the cosigner has not complied with the contractual provisions of an obligation. "Collection action" means requesting a cosigner to pay all or part of the obligation. "Cosigner" means a natural person who renders himself or herself liable for the obligation of another person without compensation. The term includes a person whose signature is requested as a condition to granting credit to another person, or as a condition for forbearance on collection of another person's obligation that is in default. The term does not include a spouse whose signature is required on a credit obligation to perfect a security interest under state law, or a person who has executed a guarantee. A person who does not receive goods, services, or money in return for a credit obligation does not receive compensation within the meaning of this definition. A person is a cosigner within the meaning of this act whether or not he or she is designated as a cosigner on a credit obligation. "Obligation" means an indebtedness incurred by an individual for personal, family, or household purposes. "Person" means an individual, firm, partnership, association, or corporation. "Primary obligor" means a person, other than a cosigner, who signs an obligation as a debtor. History: 1989, Act 211, Eff. Mar. 29, 1990